On August 6, Chime Financial, Inc. rose 6.75% in pre-market trading, trading at $27.41 per share. The rally was driven by the company's strong Q2 earnings released after the prior session's close, with results significantly exceeding market expectations on both revenue and profitability metrics.
Chime reported Q2 revenue of $669.8 million, up 27% year-over-year, beating the consensus estimate of $640.4 million. EPS came in at $0.07, well above the breakeven estimate, marking the company's second consecutive quarter of profitability. Active members grew 20% to 10.4 million, while average revenue per active member rose 6% to $260, reflecting robust demand for its digital banking products.
The company simultaneously raised its full-year revenue guidance to $2.725 billion-$2.745 billion, implying 25%-26% growth, above the prior FactSet consensus of $2.68 billion. Additionally, SEC filings indicated that Q3 stock-based compensation expenses are expected to decline by $9 million to $12 million, complementing the recently announced AI-driven workforce reduction of approximately 150 employees, further reinforcing the improving profitability trajectory.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
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